My 15 year old son is a karate instructor for a studio with a physical location. For tax year 2020, they issued both a W-2 and a 1099-NEC. The total amount of money he earned was under $1,500 (about $700 on W-2 and $800 on 1099-NEC). This was the total income he earned in 2020. Do I have it right that because they are calling him a nonemployee, he will owe taxes on the 1099-NEC portion since it is higher than $600? My son is not self-employed... he goes to a studio and collects a paycheck from them. Is there any alternative way for me to account for this income? I assume the studio made this change because it has some tax or other financial benefit to them?
